Maryland Property Tax 2026: SDAT, Homestead Credit and Homeowners' Tax Credit

Maryland is one of the few states where real property assessment is handled by a state agency — the State Department of Assessments and Taxation (SDAT) — rather than county assessors. This 2026 guide covers the two credit programs every Maryland homeowner needs to understand (the one-time-file Homestead Tax Credit and the annual-file Homeowners' Property Tax Credit), county-by-county rate caps, and the strict 45-day window to appeal your SDAT assessment.

How Maryland Property Tax Works

Maryland's system is structured around a three-year assessment cycle administered by SDAT, with tax rates set separately by the state, each county, and each incorporated municipality.

The assessment cycle

SDAT divides Maryland into three geographic areas; each is reassessed once every three years. Phase-in rules then spread any assessment increase equally over the three-year cycle, so a 30 percent reassessment jump becomes a 10 percent increase each year for three years.

Tax calculation

2026 Reassessment

SDAT's 2026 reassessment covered Group 2 properties (Baltimore City, Baltimore County, Harford County, most of the D.C. suburbs, and parts of Southern Maryland). Statewide, residential values rose at a slower pace than the 2024 and 2025 cycles, reflecting cooling housing prices. Individual areas saw variations from roughly 5 percent to 25 percent.

Homestead Tax Credit (Assessment Cap)

The Homestead Tax Credit limits the year-over-year increase in taxable assessed value for your principal residence. It does not cap the market value assessment — only the portion subject to tax.

State cap: 10%

Maryland state law caps the state-portion taxable assessment increase at 10 percent per year. This cap applies to the property's share of the state property tax (a modest $0.112 per $100 of assessed value statewide for fiscal year 2026).

County and municipal caps

Every county and incorporated municipality sets its own cap, at or below 10 percent. Notable county caps for 2026:

Who qualifies and how to apply

Maryland homeowners must file a one-time Homestead Tax Credit application with SDAT to establish eligibility. Without the application on file, you do not receive the credit — even if you have owned and occupied the property for decades.

Homeowners' Property Tax Credit (Income-Based)

Distinct from the Homestead Credit, the Homeowners' Property Tax Credit (HTC) is an income-based program. It caps the property tax owed at a percentage of household income — the state pays the difference directly to the county.

How it works

HTC uses a sliding scale. The credit amount equals the property tax owed minus a percentage of gross household income set by statute. The percentage starts at 0 for the lowest-income applicants and rises with income.

2026 eligibility (applications due October 1, 2026)

• Net worth below $200,000 excluding the primary residence and retirement accounts
• Combined gross household income of $60,000 or less (phase-out begins near this level)
• Applicant must have owned and occupied the home for at least the preceding six months
• Home's assessed value on which credit is calculated is capped at $300,000

The exact credit amount depends on income and actual tax paid. A senior with $20,000 annual income in a home with $4,000 property tax can see the state pay the majority of the tax. Eligible homeowners who do not apply forfeit the credit for that year with no retroactive claim.

Prince George's County Senior Credit (20%)

On top of the state HTC, Prince George's County offers an additional 20 percent county-portion tax credit for homeowners age 65+ who meet income limits. Similar county-level senior credits exist in Montgomery, Howard, Anne Arundel, and other counties — each with its own rules. Check your county's Department of Finance for specifics.

Disabled Veteran and Surviving Spouse Exemptions

Maryland exempts the entire property tax liability on the principal residence of:

• Veterans determined to have a 100 percent permanent and total service-connected disability by the U.S. Department of Veterans Affairs
• Surviving spouses of such veterans (as long as unremarried and continuing to occupy the home)
• Surviving spouses of U.S. Armed Forces members killed in the line of duty

The exemption is administered by SDAT. File form AT3-45 with your local SDAT office along with proof of disability status or surviving-spouse status. Once granted, the exemption continues until status changes.

Appealing Your SDAT Assessment

Because assessment is a state function, appeals go through SDAT rather than the county assessor.

Step 1: Supervisor's-level review

Within 45 days of the date of the Notice of Assessment (not the receipt date), file a written appeal with your local SDAT office. A supervisor reviews the record and may adjust the value if errors are documented. Many appeals resolve here.

Step 2: Property Tax Assessment Appeals Board (PTAAB)

If dissatisfied with the supervisor's review, you may appeal to PTAAB within 30 days of the supervisor's notice. PTAAB hearings are informal; you may represent yourself. Decisions are usually issued within 60 days.

Step 3: Maryland Tax Court

PTAAB decisions may be appealed to the Maryland Tax Court within 30 days. Tax Court proceedings are more formal and follow rules of evidence similar to a civil trial.

Step 4: Circuit Court and higher courts

Tax Court decisions may be appealed to the Circuit Court on the record. Further appeals go to the Appellate Court of Maryland and Supreme Court of Maryland.

What evidence wins

• Recent arm's-length sale of your property at a price below SDAT's valuation
• Comparable sales within the past 12 months, ideally within your immediate neighborhood and at similar square footage/condition
• Property record errors (square footage, bedroom count, missing basement, added square footage that was never actually built, etc.)
• Independent fee appraisal (helpful but not required)

Maryland Rate Highlights (Fiscal Year 2026)

Combined rates include state ($0.112/$100 of assessed value), county, and any municipal overlay. Rates shown are for unincorporated areas unless otherwise noted.

These are rounded working numbers; confirm the exact FY 2026 rate on your county's official tax rate certification. Our Maryland county page lists the effective rate for all 23 counties plus Baltimore City.

Payment Schedule

Maryland's fiscal year runs July 1 – June 30. Real property tax bills are issued around July 1 covering the full fiscal year.

• Full payment: due by September 30 to avoid interest
• Semiannual schedule (owner-occupied residential only): first half due September 30, second half due December 31
• Delinquency: interest accrues at 1 percent per month plus a local penalty. After two years of delinquency, the county tax sale process begins.

Frequently Asked Questions

What is Maryland's Homestead Tax Credit?

The Homestead Tax Credit caps the year-over-year increase in taxable assessed value for your principal residence. The state cap is 10 percent; each county and municipality sets its own cap at or below 10 percent (Baltimore City 4%, Prince George's County 3%, Anne Arundel 2%, Montgomery 10%). You must file a one-time application with SDAT to receive the credit.

How do I qualify for the Maryland Homeowners' Property Tax Credit?

Combined gross household income of $60,000 or less, net worth under $200,000 (excluding primary residence and retirement accounts), and ownership/occupancy of the home for at least six months preceding the application. The credit is sliding-scale: the state pays property tax in excess of a percentage of gross household income. Applications for 2026 are due October 1, 2026, through SDAT via Maryland OneStop.

When is the Maryland property tax appeal deadline?

You have 45 days from the date of the SDAT Notice of Assessment (not the receipt date) to file a supervisor's-level appeal. If unresolved, appeal to the Property Tax Assessment Appeals Board (PTAAB) within 30 days of the supervisor's decision, then to the Maryland Tax Court within 30 days of the PTAAB decision.

Does Maryland have a senior property tax exemption?

Maryland does not have a statewide senior exemption, but several counties offer a local senior tax credit. Prince George's County provides a 20 percent county-portion tax credit for homeowners age 65+ meeting income limits. Similar programs exist in Montgomery, Howard, Anne Arundel, Baltimore, and other counties. Disabled veterans with 100 percent service-connected disability qualify for a complete property tax exemption on their principal residence.

How often is property reassessed in Maryland?

SDAT reassesses every property on a three-year cycle. Any increase in assessed value is phased in equally over three years, so a 30 percent reassessment increase would result in 10 percent increases in each of the following three tax years.